Wall Street Today: Stocks Soar as Court Blocks Trump Tariffs, Nvidia Leads Gains with 6.4% Surge

Wall Street saw a strong rally on Thursday as investor sentiment turned upbeat following a key federal court decision that blocked a majority of tariffs imposed during the Trump administration. The decision, coupled with robust quarterly earnings from Nvidia, sent the major indexes higher, with technology stocks leading the charge.

Major Indices Close Higher

The S&P 500 climbed 1.3% to close at 5,123.87, while the tech-heavy Nasdaq Composite surged 2.1% to finish at 16,042.19, marking its best single-day gain in over a month. The Dow Jones Industrial Average advanced 0.8%, adding over 300 points to end at 39,412.53.

"Markets were clearly looking for a catalyst, and they got two today," said Elena Martinez, senior market strategist at Fidelity Investments. "The court ruling is a meaningful de-escalation of trade tension, and Nvidia’s stellar results are reigniting enthusiasm around AI-driven growth."

Court Ruling Sparks Trade Optimism

The turning point came early in the session after a federal appeals court ruled that most of the tariffs enacted during the Trump administration on imported industrial goods and components lacked sufficient legal basis. The ruling affects hundreds of billions of dollars in imports, and while it does not reverse all trade restrictions, it is seen as a major rollback.

"This ruling significantly eases pressure on manufacturers and multinational companies that have struggled with higher input costs," said Rajeev Patel, chief economist at Global Insight Advisors. "It's a bullish signal for global trade and economic normalization."

Industrials, materials, and consumer discretionary sectors all benefited from the news, with stocks like Caterpillar (+3.2%), Boeing (+2.5%), and Nike (+2.1%) among the top gainers.

Nvidia Steals the Show with Blowout Earnings

Chipmaker Nvidia once again beat Wall Street expectations, reporting a 28% increase in quarterly revenue, driven by sustained demand for AI chips and cloud data center expansion. The company reported earnings per share of $5.14 on revenue of $28.7 billion, surpassing analyst estimates across the board.

Shares of Nvidia rose 6.4% to $1,085.32, contributing significantly to the Nasdaq’s surge. The company also issued bullish forward guidance, projecting continued momentum in the AI and enterprise computing segments.

"Nvidia is the clear leader in the AI hardware space, and its results validate that leadership," said Priya Desai, technology analyst at Bernstein. "The numbers were phenomenal, and they reinforce the narrative that AI isn’t just hype — it's driving real revenue."

Semiconductor peers like AMD (+3.8%) and Broadcom (+2.9%) also rallied in sympathy, boosting the Philadelphia Semiconductor Index by 3.1%.

Other Key Market Movers

• Tesla Inc. gained 2.7% after announcing plans to accelerate the rollout of its next-generation autonomous driving software in Europe.

• Apple Inc. rose 1.9% amid reports that it will unveil a new AI-focused iOS update at its June developer conference.

• Amazon.com Inc. added 1.6% on increased consumer spending projections heading into the summer season.

Meanwhile, oil prices remained stable, with Brent crude settling at $83.40 per barrel. Treasury yields declined slightly, with the 10-year note falling to 4.29%, indicating a modest return of risk-on sentiment among investors.

Analyst Take: What's Next for Investors?

With the S&P 500 reclaiming key technical levels, some analysts are turning cautiously optimistic. However, they warn that volatility could return with upcoming economic data, including the next U.S. jobs report and inflation figures.

"While today’s rally is encouraging, markets remain data-dependent," said Laura Kim, head of equity research at Morgan Stanley. "We need to see follow-through on inflation cooling and sustained earnings strength beyond just the tech sector."

The VIX, Wall Street’s fear gauge, dropped to 12.4, its lowest level since February, signaling lower investor anxiety — at least in the short term.

Investor Outlook: Balanced but Bullish

Thursday’s market surge has helped restore confidence that had been shaken by geopolitical tensions and mixed economic indicators. With trade uncertainty easing and technology continuing to outperform, investors are recalibrating their portfolios toward growth-oriented assets.

Still, many remain mindful of potential headwinds, including future Fed policy moves, slowing global growth, and election-year unpredictability.

Conclusion

Wall Street wrapped up a milestone session driven by legal and corporate developments that rekindled investor enthusiasm. As markets digest the implications of tariff rollbacks and tech earnings momentum, the mood has shifted toward cautious optimism. The coming weeks will test the durability of this rally as investors look for confirmation that the U.S. economy can sustain its growth trajectory without reigniting inflation.